Click on the chart to enlarge it.
Let me also address the issue of the delay between the three-day setup that completed on the 18th and this 113-minute Cross Kiss setup on the 28th. This was a 10-day delay between the two timeframes.
Delayed setups are somewhat common and in no way diminish the quality of the signal. Remember that the quarterly setup occurred at the end of 2003 and that the two-month setup finally offered an entry sometime after February 1st.
We're analyzing a trade in mid-May, a full three+ months after the highest timeframe setup. A quick calculation shows that of the three prior quarterly signals (all the data that I have), the first two lasted more than ten quarters before the maximum profit was achieved and the most recent completed quarterly signal had a lifespan of seven quarters before the maximum profit occurred.
If the current quarterly signal is anywhere near the average, there are still six more quarters (a full year and a half) remaining before the maximum depth of this bear market is achieved.
Even if the signal only remains in force for the duration of the shortest signal (seven quarters), there should still be four quarters (a full year) of additional downward movement before the maximum profit is achieved.
I know it hurts to see a substantial amount of the profit opportunity slip away, and of course there's nothing wrong with aggressively entering a trade from a single or dual timeframe Ocean setup.
However, often the reason that that lower timeframe hasn't generated an elegant setup is because the market is consolidating prior to the next thrust, and you don't want to be in a market wasting time and mental energy waiting on the next real thrust.
When several time frames all synchronize like this the risk is greatly reduced. It's a tradeoff between aggressive profit pursuit and the safety of risk management. Using the Ocean tools you can find a style that balances your risk tolerances with the desire for profits and is supportive of your psychological makeup.
(This is the end of Part 10. Go to Part 11.)
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